(Reuters) - Shares of HeartWare International Inc HTWR.O leapt more than 11 percent on Thursday, after the medical device maker called off a planned acquisition and reached an agreement with an activist investor.
HeartWare said on Thursday it was ending its planned purchase of Valtech Cardio and had agreed with investor Engaged Capital on the selection of a new independent director for the company’s board of directors.
Its stock was up $3.80 to $38.30 in afternoon trading.
Engaged, which had pushed the company to drop its merger with Valtech and instead consider selling itself to a larger buyer, has also agreed to withdraw its previously nominated slate of directors. Hudson Executive Capital disclosed a 5 percent stake in the company on Jan. 15.
Reporting by Michael Flaherty; Editing by Bill Rigby